Farage: more Grillo than Griffin

UKIP is the British version of a Europe-wide rejection of mainstream, established politics.

For many, UKIP’s success in the county council elections last week is the latest in a string of stunning results for the extreme right across Europe. Parties that reject multiculturalism and the EU in favour of more assertive nationalism are growing in popularity, and Nigel Farage’s party is the UK edition: BNP-lite, a radical right wing party that appeals to the electorate’s dislike of the European Union and fears about immigration.

But there is another – unlikely – political insurgent that Farage shares more in common with than Nick Griffin: the radical comedian-turned politician from Italy, Beppe Grillo. Both are best viewed as primarily anti-establishment populist movements, neither obviously left nor right-wing.

Populist parties pit the good, honest, ordinary voter against the out-of-touch, liberal, mainstream political elite. They claim to represent the former against the latter, an authentic and common sense voice in a world of spin and self-interest.

It is not the extreme right that is on the march across Europe, but a much wider rejection of mainstream, established politics. Sometimes that takes the form of Marine Le Pen or Geert Wilders. But the economic crisis is also lifting the anti-mainstream left, such as Mélenchon in France, Syriza in Greece and most obviously Beppe Grillo in Italy.

Of course, on several specific policies they are a world apart. Grillo is furiously anti-austerity, and is passionate about green energy. But for both, specific policies probably matter less than the broader line that politics is dominated by a identikit group of cosseted elites whose ideas can be separated by a cigarette paper.

Self-interested and self-perpetuating, they have forgotten ordinary people, and cannot be trusted. Because the European Union is especially distant and unaccountable, both Grillo and Farage want out, with democratic power being wrestled from the Eurocrats and handed back to the people.

Beppe plays the outsider: he proclaims that political parties are finished, and calls Berlusconi a "psycho sex dwarf’. Mr Farage, you may have noticed, increasingly talks about "the professional political classes", rather than Europe, often with pint in hand. As the academic Rob Ford as pointed out, immigration is far from the main concern UKIP voters have.

Similar too, is their support and sudden prominence. Both UKIP and Grillo’s party scored around 25 per cent in their respective elections this year, and this is because their approach to politics and assessment of the problem strikes a very large chord. According to the 2012 Eurobarometer poll, 82 per cent of UK public "tend not to trust" political parties; 77 per cent "tend not to trust" the national government.

Membership of political parties has evaporated (there are now three times more Twitter followers of Tory MPs than there are formal party members). The disenchantment reaches into the broader establishment too: 45 per cent of us "tend not to trust the justice system" and 79 per cent "tend not to trust" the mainstream media. The scores in Italy are remarkably similar.

As with most political terms, 'populism' is malleable, elastic. It is sometimes deployed to discredit, describing an overly simplistic form of politics which stirs up emotions and directs it unfairly at (usually foreign) scapegoats. Equally though, it can be an important check on politics that gets too far out of sync with those it is meant to represent, a sort of democratic nudge. Often it is both.

Either way, with turnout falling, especially in local and European ballots, winning elections is increasingly about mobilising voters. Any party presenting a radical alternative to the status quo has avery large potential support base. Throw in modern tools of communication – both Beppe Grillo and another outsider-populist George Galloway used social media to communicate and get their vote out – and UKIP-like results will become more common. Farage called it a sea change. He is probably right.

"Farage increasingly talks about 'the professional political classes', rather than Europe, often with pint in hand." Photograph: Getty Images.

Jamie Bartlett is the head of the Violence and Extremism Programme and the Centre for the Analysis of Social Media at Demos.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.